United Technologies closer to acquiring Goodrich for £18.4bn

United Technologies (UT) has reached an agreement to acquire Goodrich for $127.50 (£81.40) per share in cash.

According to UT, this equates to a total enterprise value of $18.4bn (£11.7bn), including $1.9bn (£1.2bn) in net debt assumed.

UT said in a statement that it expects to finance the transaction through a combination of debt and equity issuance and that closing is subject to customary closing conditions, including regulatory and Goodrich shareholder approvals.

Following completion of the transaction, UT is expected to have worldwide sales of approximately $66bn (£42.1bn) based on projected 2011 results.

Goodrich is a global supplier of systems and services to the aerospace and defence industry. Its products include aircraft landing gear, aircraft wheels and brakes.

Goodrich, with estimated 2011 sales of $8bn (£5.1bn), serves a global customer base with 27,000 employees worldwide.

‘Goodrich delivers on all of our acquisition criteria. It is strategic to our core, has great technology and people, and strengthens our position in growth markets,’ said Louis Chênevert, United Technologies chairman and chief executive officer.